Archax, the FCA-regulated exchange, broker and custodian for digital assets, announced that it has added State Street, Fidelity International and Legal & General Investment Management (LGIM) funds to the range of tokenized real-world assets (RWAs) that it offers.
Starting with offering tokenized access to certain State Street Global Advisors, Fidelity International and LGIM money-market funds (MMFs) via “beneficial ownership tokens, minted and offered by Archax representing the holdings of clients of Archax in such funds.”
This might be expanded to include other fund offerings.
Providing digital representations of MMFs is proving to be a “popular” use case for tokenization and blockchain tech, as it opens up a potential new audience for these types of “yield-bearing products that historically have been challenging to access – such as holders of stablecoins or FinTech firms holding cash as treasury.”
Additionally, the MMF tokens also have the potential to be used as collateral, in the form of a yield-bearing “currency”, that can be used for payments between counterparties.
Graham Rodford, CEO and co-founder of Archax, said that tokenised real-world assets, and in particular funds, “are really gaining momentum.”
Rodford added that the industry sees the path to “additional distribution and liquidity that tokenisation brings, as well as the new innovative use cases like collateral transfer.”
The first funds to be listed on the Archax platform in token form “are the Irish domiciled State Street USD/GBP/EUR Liquidity LVNAV Funds, the Fidelity ILF USD/Sterling/Euro Funds and the LGIM Sterling/USD/Euro Liquidity Funds.”
Archax will issue beneficial ownership tokens representing the “holdings of clients of Archax in such funds and initially make these tokens available on Hedera Hashgraph, XRPL and Arbitrum.”
As covered, Archax is the digital securities exchange regulated by the FCA in London.
Targeted at institutions, Archax also “has its FCA brokerage, custody and crypto permissions.”
Founded by professionals from traditional capital markets and backed by an accomplished advisory board, Archax offers a bridge between the blockchain world and the investment space.
The Archax team is used to working in regulated markets and has a deep understanding of the blockchain landscape and tokenisation – as well as a vision of how to “evolve them and open up digital assets to institutions in a transparent manner.”
Archax’s solutions are built using “resilient, scalable, high-performance” infrastructure, integrated into the institutional trading workflow.
